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Press Aide: Lawrence Cook, 860-240-8609

September 28, 2016

September 28, 2016

Bye Votes to Keep & Grow Sikorsky Jobs in Connecticut

State Senator Beth Bye (D-West Hartford) joined a historic vote in the state Senate today to retain and grow approximately 8,000 jobs at Sikorsky Aircraft until 2032, keep the Sikorsky headquarters here in Connecticut, and substantially increase Sikorsky’s spending with its network of 302 in-state suppliers —14 of which are located in Sen. Bye’s Senate District towns of Bloomfield, Farmington and West Hartford.

The agreement with Sikorsky will infuse an estimated $69 billion into Connecticut’s economy, generate $384 million per year in annual tax revenue, generate $21 billion in employee wages and benefits, and directly and indirectly support 24,600 jobs.

This agreement presents an opportunity to strengthen one of three critical components of Connecticut’s defense industry sector and to shore-up the state’s standing as a leader in fields of aerospace technology and manufacturing. The increased spending by Lockheed Martin in Connecticut’s supply chain alone will exceed the totality of the state’s full incentive package.

“When you combine this agreement today with the recent announcements by Electric Boat and Pratt & Whitney about their intention to hire thousands of new employees over the next few years, and you look at what’s happening with bioscience and entrepreneurship in Connecticut, and our efforts to bring gigabit internet to every city and town, we are very well positioned to keep our college graduates in Connecticut, working here and raising a family here,” Sen. Bye said. “We’ve got to keep this good momentum going. One of the ways we do that is to keep looking forward, keep investing, and ensure that we are creating the educational opportunities that our children and college students need to succeed and secure high-tech employment.”

Today’s agreement with Sikorsky comes on the heels of recent announcements by Pratt & Whitney and Electric Boat that they plan on hiring several thousand employees in the next several years and expanding operations in Connecticut, thereby reinforcing Connecticut’s standing as a leader in fields of aerospace technology and manufacturing.

Under the terms of the new agreement, Sikorsky/ Lockheed Martin will:

Keep the Sikorsky headquarters in the state and maintain Connecticut as a primary production facility for its government-based helicopter business

Retain and grow its full time employment in Connecticut from a minimum of 6,500 employees in 2019 to just over 8,000 by 2032

Increase its spending with Connecticut subcontractors from $300 million per year beginning in 2019 to $470 million per year beginning in 2030.

Increase its capital spending for machinery and equipment by 22 percent.

In exchange, Connecticut will provide financial incentives totaling up to $220 million over the term of the agreement:

Sikorsky will earn grants of up to $8.57 million on an annual basis over the term of the agreement by meeting certain benchmarks, such as retaining at least the minimum level of each category; growing jobs; payroll spending; utilizing in-state suppliers; and deploying capital for machinery, equipment, and other long term investments

Sales and use taxes will be exempted up to $5.7 million per year over the term of the agreement

If Lockheed Martin exceeds the target level employment by 100 to 550 jobs in any given year of the agreement, it will be eligible for a performance incentive grant of up to $1.9 million, for a total of up to $20 million

Under terms of the new agreement between Sikorsky and the state—an agreement which is still pending U.S. Navy and labor union approval—Sikorsky will build nearly 200 CH-53K King Stallion helicopters in Connecticut for the United States Navy until at least 2032.

The King Stallion is approximately the size of two passenger buses; it is capable of lifting 36,000 pounds and can carry a fully loaded Humvee and a platoon of 48 Marines. During the construction and testing of four King Stallion prototypes at Sikorsky’s West Palm Beach, Fla. facility, Connecticut subcontractors provided more $161.4 million worth of product design, development and parts.

Sikorsky presently has 7,855 employees at its facilities in Stratford, Bridgeport, Shelton and North Haven. Those employment figures will decline slightly, then grow, over the next several years as Sikorsky transitions its work in Connecticut from building the Blackhawk helicopter for the U.S. Army to the new, larger King Stallion helicopter for the U.S. Navy.

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